The energy tax would be yielding e30 million to the government from the self-employed, and this was apart from the impact of new taxes on business transport, announced in the budget, Gavin Gulia, Labour Party spokesman for the economy and self-employed, said yesterday.

The surcharge on utility bills was already high and with the new tariffs, equivalent to a surcharge of 194 per cent, business would be badly hurt and their competitiveness would be undermined, particularly that of small exporting enterprises.

All the social partners were worried about the government economic policy, even leading economists. They are all clamouring for a direction change by the government, especially on electricity and water tariffs, Dr Gulia said.

Dr Gulia referred to the results of a recent survey by the GRTU, Chamber of Small and Medium Enterprises, in which the self-employed felt in their majority that business would be bad or very bad over the Christmas period.

It was an insult to families who run businesses for the government to tell them that the new utility tariffs were needed to protect the jobs of their employees. It was madness for the government to expect that with a 194 per cent surcharge, trade would remain competitive and continue creating employment.

It was in fact already clear that the conditions of those already in employment were being whittled away, and other jobs were threatened, Dr Gulia said.